The ability to grant every year, forever – no matter the financial climate.

Feb. 26, 2018

Author:

Martha Powell

2017 was a wonderful year for our foundation. Community support was unwavering, incredible grants were made, and our volunteers and staff shone – this is all because of the incredible support from our donors (thank you!!!!). But it wasn’t without some discussions surrounding tough topics, as all organizations must have as they adapt with changing times.

As 2017 wound down, London Community Foundation’s Board of Directors were busy discussing, reviewing, and approving a development designed to ensure capital preservation and consistency in granting for our fundholders.

Upon the recommendation of LCF’s Finance & Audit Committee, following a comprehensive and carefully considered review in 2017, the Foundation’s disbursement quota – the percentage of a fund’s opening capital balance that’s available for granting each year – will be adjusted from 4.5 per cent to 4 per cent.

We want to ensure that all of our fundholders and their funds are able to always grant, no matter the financial climate. This means that we’re being proactive, protecting the capital of the fund to ensure we’re able to grant year after year. By reducing the disbursement quota to 4.0%, all funds will be able to grow a larger undistributed income. For example, in the case of a market downturn, you will be able to continue to support the causes you care the most about, without having to worry about how your capital is impacted.

We’re proud of the low-cost philanthropy we offer at LCF. That said, we want to be clear: the “extra” 0.5 per cent will not be going to administration, but to the undistributed income of your fund for your future granting.

For reference, the disbursement quota of our peer community foundations across the country is generally 3.5 to 4 per cent. The Canada Revenue Agency’s required disbursement quota is 3.5 per cent. We’re committed to reviewing this quota on a yearly basis with the intended goal always to be maximizing the annual granting available while ensuring capital preservation and the consistent ability to grant. We truly want to ensure our fundholders can support the causes and organizations they’re passionate about’ not only today, but also for the next 100 years.

At London Community Foundation we’re here for the community, forever. We’re committed to ensuring your contributions are always producing a return for the community, no matter what’s happening in the markets.

Sincere thanks to our fundholders for making our community stronger for everyone.

If anyone has any questions, concerns or comments, please don’t hesitate to contact me directly, or our Director of Philanthropy, Diane Silva.